FLIPPING A PROPERTY TO A PARTNER AND MAINTAINING OWNERSHIP. Scaling your business with no money in!

Описание: In this video I'll walk through how to flip a property to a joint venture partner and remain an owner on the property. This strategy combines a fix and flip and a long term buy and hold with the benefits of both. This has allowed me to scale my real estate investing business with zero money down and zero dollars invested into these properties... and I got to make money on the flip portion of the property as well. This allows me to use the same money over and over again in order to build my real estate portfolio.

Step 1: FIND & ACQUIRE THE PROPERTY
The first step in the process is acquiring a good property that will have the potential to add value. In this case we purchased a single family dwelling that we were going to add a basement apartment to. Don't be afraid to make offers on properties! Make an offer and then do your due diligence. We put a conditional offer on this property on financing, home inspection and with the option to check with the local municipality to make sure we could put a legal basement apartment in this home. If we can't meet any of our conditions, we just walk away from the property.

Step 2: RENOVATE THE PROPERTY
Once you've acquired the property, now it's time to renovate it. In this case we were adding a legal basement apartment. In order to do this check with your local municipality on what the regulations are for your specific area. You'll need a secondary suite permit and inspections will have to happen throughout the renovation process.

Step 3: RENT THE PROPERTY
Once your renovation is complete and your permits are all closed, now it's time to rent out the property. Find great tenants, screen them very carefully and put them in the property and start generating revenue.

Step 4: SELL THE PROPERTY TO ANOTHER INVESTOR
Now that you have a turnkey property (fully renovated and tenanted) you're ready to sell the property to another investor. Your new investor will come in and purchase the property from you as they would in any other transaction. The difference with this strategy is that you negotiate a percentage ownership in the property moving forward. Because a new investor is coming in, they'll go to the lender and get a new mortgage on the property which allows you to exit the transaction on paper (remove yourself from the title). You will remain an owner through a joint venture agreement and a bare trust agreement. The joint venture agreement is your legal documentation that you own a portion of the property and the bare trust agreement is used for tax purposes so you don't have to pay capital gains tax on the property when you sell because you haven't fully liquidated your interest in this property.

Step 5: OPERATE YOUR NEW LONG TERM BUY AND HOLD
The last part of the process is to operate this property as you normally would with any other property in your portfolio.

The benefits of this strategy are significant. You can make money on the initial flip of the property, maintain ownership of the property moving forward with none of your own money in the transaction, you get all of your capital back so you can repeat this process, you add another property to your long term buy and hold portfolio, you are not on mortgage and title so this will not affect your credit and if you're buying the right property in the right neighbourhood you've got a property generating money in 4 different categories; Positive cash flow, mortgage pay down, natural appreciation and forced appreciation.

If this is done correctly you can create enough of a win/win scenario that your partner will be happy to give up ownership of a portion of the property.

DISCLAIMER:
WITH ANY AND ALL INVESTING YOU SHOULD ALWAYS OBTAIN INDEPENDENT LEGAL, TAXATION AND FINANCIAL ADVICE FROM A LICENSED PROFESSIONAL BEFORE INVESTING ANY OF YOUR OWN MONEY.

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